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# Ethical Superannuation Australia: Is It Just a Greenwashed Rip-Off?
- URL: https://www.baldmoney.com/ethical-superannuation/
- Published: 2017-03-19T00:00:00.000Z
- Updated: 2026-06-13T05:51:42.000Z
- Description: Want to save the world with your superannuation? Make sure you check the fees first. Here is why outsourcing your ethics to a high-fee fund could cost you $100,000.
- Author: Baron Barnet
- Tags: Australia, Superannuation

A friend recently asked me to take a look at [Australian Ethical Super](http://www.australianethical.com.au/?ref=baldmoney.com) for their retirement savings. After digging into the numbers, I wasn’t very impressed. Sure, it might feel warm and fuzzy to invest ethically, but does **ethical superannuation in Australia** make sense for your future wallet?

Here are two reasons why you should think twice before joining high-fee **ethical super funds**:

**1\. The fees are eye-wateringly high:** The Australian Ethical MySuper Balanced option charges total fees of 1.134% p.a. By comparison, one of the cheapest super funds in Australia, the Hostplus Indexed Balanced option, charges just \~0.11% p.a. Using the Moneysmart superannuation calculator, that tiny percentage difference adds up to about **$100,000 less in retirement** by age 67 for a 30-year-old earning $100,000 a year. That’s a massive fee penalty to pay for outsourced ethics.

**2\. Below-average investment performance:** You’d hope that paying premium fees would get you premium returns, but their 10-year performance of 3.7% sits well below the industry average of 5.35% (according to SuperRatings). You are paying more to get less.

If you want to support green energy and avoid fossil fuels, you can easily select low-cost socially responsible (SRI) index options within major industry super funds for a fraction of the cost, or invest your own cash directly into ethical ETFs. Is losing $100,000 of your retirement nest egg really worth it to outsource your ethics to a manager?